News

Ensure uptime with a single service provider

July 5, 2005

Efficiency and customer service - it's a fine balance between the two for a financial institution, especially where its ATM network is concerned. And some FIs do a better job in the balancing act than others.

In 2004, Columbus, Ohio-based Huntington National Bank was recognized by CIO magazine for its operational and strategic excellence. According to Lori Murray, HNB's senior vice president of retail distribution and operations, finding ways to do things more efficiently is a regular practice for the $30 billion bank.

This story and all the great free content on ATMmarketplace is supported by: Efmark

About 60 percent of HNB's 800 ATMs fall into the off-premise category. "For a financial institution, ATMs are a great way to service our customers," Murray said. But having a footprint that stretches across five states presents a few logistical and efficiency hurdles, especially where service and maintenance contracts are concerned.

To address the problem, HNB signed a deal three years ago with Westmont, Ill.-based Efmark Service Company of Illinois Inc. (Efmark Premium Armored ATM Services). Efmark now provides vault cash replenishment and second-line maintenance for a portion of HNB's ATMs.

The deal kept HNB from signing contracts with multiple vendors in certain parts of the country, Murray said.

One call does it all

"There's a real benefit to one-stop shopping," Murray said. "When they send somebody out to make the call and then find that they need another technician, they take care of calling someone else to come back out."

And Efmark isn't alone. The one-stop-shopping model is catching on, said Ed Weaver, principal partner of Washington, D.C.-based Castle Consulting Group.

"ATM owners can anticipate a number of advantages from a managed services offering, including improved productivity and cost reduction by implementing the well-defined business processes available," he said.

"Managed service models allow ATM owners to retain control of their ATM channel while enjoying the benefits of having a single provider for day-to-day operational support. These include single point-of-management, which reduces contract management, as well as reducing internal overhead."

Vendors like Marietta, Ga.-based Alliance Services LLC and California-based Palm Desert National Bank also are offering FIs more service options because "ATM deployers want cost-savings and ATM uptime," said Robert Malik, Efmark's senior vice president. "At the end of the day, uptime is what truly matters."

The uptime advantage, he said, with a single provider is cross-trained technicians. "Cross-training with armored technicians who have experience on the ATM side is important so that they can solve simple problems. That way, if it's something that they could fix while they're there, you don't have to call somebody else out."

Murray agreed. "We just have one person to call to take care of everything. It's nice for a financial institution to not have to work in the middle, in between vendors."

When FIs are in the middle, Malik said, they are forced to determine who's accountable. "If a machine is out of service because the cash wasn't replenished properly, then it becomes an issue of who you blame and whether or not you should pay that vendor."